Canada needs a national, independent research institute dedicated to applied computing. Applied computing encompasses the research fields that are the basis of digital innovation – including artificial intelligence, robotics, applied mathematics, and quantum computing. These fields bridge fundamental computer science with real-world applications, enabling research that directly translates into new technologies and startups. This will help build the tech ecosystem Canada is sorely lacking.
In contrast to Canada's existing AI institutes (Vector, Mila, and Amii), which focus on AI research primarily through academic and industry partnerships, the Institute for Applied Computing would operate as an independent, research-first institute with dedicated staff and a nimble structure optimized for commercialization. Crucially, the Institute's scope extends beyond AI to encompass the broader landscape of applied computing — recognizing that today's breakthroughs often emerge from fields that are not yet mainstream. Its research would advance both current AI capabilities and the foundational and emerging fields that will drive future innovation.
The Institute will deliver measurable economic and research outcomes:
The Institute for Applied Computing would be a publicly funded, independently governed organization, established under federal mandate. This balances public accountability with the independence necessary for high-impact research.
The institute's launch could be supported through Canada's Strategic Response Fund, which designates large-scale R&D as a priority. Similarly as Innovation, Science and Economic Development Canada (ISED) reprioritizes its programming and the National Research Council (NRC) reorganizes to focus on "relevant and impact areas", reallocated funding can help build the Institute's initial research teams and infrastructure.
The institute would be primarily sustained by base funding through ISED, which would be tied to periodic, independent evaluations. A dedicated technology transfer office will ensure commercialization through licensing, spin-offs, and industry partnerships, which would generate revenue to help sustain the Institute while also bolstering Canada's tech ecosystem.
Furthermore, the Institute could integrate with the federal government's proposed $1 billion program for attracting exceptional international researchers, positioning the Institute as a destination for applied computing research talent.
The Institute will focus on research in the fields of artificial intelligence, applied mathematics, computer science, data science, and quantum computing. Its research portfolio will balance high-risk, high reward exploratory research with application-driven projects aimed at shorter term real-world impact.
The Institute will operate from a dedicated facility hosting both permanent and term-based researchers, supported by a core staff of engineers and shared administrative personnel. This lean structure reduces overhead, avoids duplication of responsibilities, ensuring operational efficiency – a priority indicated in the latest budget proposal.
Research will be conducted primarily through small Project Teams, the Institute's central operational units.
Project Teams are small, autonomous research groups composed of 10-30 members, which include principal investigators, research scientists, and engineers.
The Institute would maintain a dedicated technology transfer department responsible for: supporting spin-off companies, managing intellectual property, and facilitating industry collaborations. This approach has proven to generate direct economic benefits: for example, France's Inria has launched over 170 startups, and Germany's Max Planck Institutes have produced 160 spin-offs and 2,700 licensing agreements.
Canada's AI Institutes — the Vector Institute (Toronto), Mila (Montréal), and Amii (Alberta) — are essential components of Canada's AI strategy and have successfully positioned the country as a global leader in artificial intelligence research. These institutes primarily operate through academic partnerships, with research conducted by university affiliates rather than dedicated, independent research staff. While this model has proven effective for AI research, it is important to recognize that transformative breakthroughs often emerge from research areas that are not currently mainstream. Geoffrey Hinton's Nobel Prize-winning work on neural networks, for instance, was considered niche and unpopular for decades before becoming foundational to modern AI. Canada needs an institute that can support the full breadth of applied computing research — not just AI, but also the emerging and unconventional fields that will yield the next generation of breakthroughs.
Mitacs serves as a funding agency supporting internships and collaborations between universities and industry. It does not conduct research itself or maintain a permanent research staff.
The National Research Council (NRC) is a federal agency with broad mandates across science and engineering. Its funding programs, such as IRAP, primarily support established companies pursuing industrial research to improve products, usually in hardware or hard sciences. NRC does not provide startup funding, and its timelines are not aligned with software or fast-moving digital industries.
Canada lacks a truly independent, research-first institute with a dedicated staff and a focus on commercialization across the full spectrum of applied computing. The proposed institute would enable long-horizon, high-impact research while providing clear pathways for commercialization. This combination of academic freedom and applied innovation has proven in many cases to yield substantial economic value (see examples below).
Institutes listed below represent international examples of research institutes with a focus on applied computing, and have a successful record of commercialization and startup creation.
| Institute | Country | Organization | Outcomes |
|---|---|---|---|
| Inria | France | National institute; organized in "project teams", mixed public/industry funding (primarily public) | Over 170 startups. List of spinoffs. |
| Max Planck Institutes | Germany | 80+ research institutes, publicly funded, research groups with 6 year contracts and their own budget. | 200 companies founded, and spin-offs have created over 9,300 jobs. |
| Fraunhofer | Germany | 75 institutes and research units. Majority funded through contracts (private and public sectors) | Spin-offs (on average, one new company a year). High economic impact. |
| DFKI | Germany | Public-private partnership. Funding from government agencies and industry partners. | Over 100 spin-offs with more than 2500 jobs. |
| SRI International | USA | Independent non-profit R&D, relies on contracts and spin-offs. | AI drug discovery spin-off, List of spin-offs, created Siri |